Revenue from its video subscribers — still the largest segment area for the second-largest cable operator in the U.S. — sank 2.8% to $2.46 billion during the period. Time Warner Cable also posted a net decline in subscribers of 38,000.
The one bright spot here was continued higher revenue per subscriber. Average monthly programming costs for Time Warner were up 12.5% to $39.03 for the fourth quarter.
Broadband business gained 7.4% to $1.64 billion, adding 168,000 customers. Voice revenue sank to $470 million, but added 295,000. Triple play net additions, those buying all three services — video, voice and broadband — gained 273,000.
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Due to strong political advertising during the fourth quarter, total advertising revenue leaped 19.4% to $332 million. Political advertising revenue was $61 million in the fourth quarter ($113 million for the full year of 2014). This compared to $7 million in the fourth quarter 2013. (TWC earned $28 million for full year of 2013).
Rob Marcus, chairman/CEO of Time Warner Cable, says he expects the merger with Comcast to “close soon.”
Overall revenue was up 3.8% to $5.79 billion; net income was 2.6% higher to $554 million.
Revenue from its video subscribers — still the largest segment area for the second-largest cable operator in the U.S. — sank 2.8% to $2.46 billion during the period. Broadband business gained 7.4% to $1.64 billion.
If retransmission fees are projected to double the next 4 years while the correlated revenue is declining, it appears and the math indicates that broadband growth is subsidizing retransmission fee growth. Net neutrality advocates should be going to town on this....